Coal India net profit spikes 70% on robust power demand

Coal India reported 70% higher net profits at Rs7,756 crore for Q3FY23 as power demand surged in the quarter amidst extreme weather conditions. The actual profits for the quarter were 1% above Bloomberg consensus estimates. Net profits rose 28% sequentially, compared to the second quarter. Total revenues from operations for Q3FY23 were 23.7% higher at Rs35,169 crore. 

 

Coal India, which accounts for over 80% of the coal produced in India, also saw its quarterly expenses spike 15.2% yoy to Rs26,246 crore in the December 2022 quarter. CIL declared its second interim dividend at Rs5.25 per share for FY23. The record date for the dividend has been fixed by the company at 08th February 2023. It has maintained high dividend yield.

 

The top line and the profits for the quarter surged as the demand for coal surged in the quarter amid extreme temperatures. During the year, weather conditions ranged from heatwaves in April to severe cold in December. This has put additional strain on the power supply. The pressure is so high that the central government has even requested the utilities not to retire coal-fired power plants till 2030. Centre may pass an emergency law to force plants to run on imported coal to avoid power shortage. 

 

The coal ministry has recently stated that it does expect Coal India Ltd to surpass its full year production target of 700 million tonnes. During the year, it is not just Coal India, but even captive mines of various companies have been churning out massive quantities of coal. However, amidst this surge in output, the demand for power has been consistently growing much faster.

Top stories
Company

L&T Partners with PS Technology to Revolutionise Railways

6 mins read . 02 Aug 2024 . 12:45 PM

Company

Jindal Saw Q1 FY24 PAT Rises 67% to Rs 441 Cr

4 mins read . 02 Aug 2024 . 12:41 PM

Company

Pfizer Q1 FY25 PAT Zooms 61% to Rs 151 Cr

4 mins read . 02 Aug 2024 . 12:36 PM

Related Blogs
blog-logo

Candlestick Patterns

blog-logo

11 mins read . 03 Oct 2024

Ascending Triangle Pattern - Definition, Tips, Component & How to Trade

  • 0 people read
blog-logo

IPO

blog-logo

5 mins read . 19 Sep 2024

Vision Infra Equipment Solutions Limited IPO

  • 0 people read
Kickstart your equities journey today You've got this
By submitting this I agree to the terms & conditions